Bitsight believes in the value of cybersecurity ratings because we know they represent more than just what’s happening within an attack surface. Bitsight Security Ratings are independently verified to correlate with data breach risk and stock performance.
Correlation to Data Breach
Bitsight is the only Security Rating Service provider with a third-party validated correlation to breach. As validated by AIR Worldwide and IHS Markit, companies with a Bitsight Security Rating of 500 or lower are almost five times more likely to suffer a breach than those with a rating of 700 or more.
For more information about how Bitsight Security Ratings correlate to likelihood of data breach, download this data sheet.
Correlation to Ransomware Event
Bitsight’s research shows that organizations with a rating lower than 600 are 6.4 times more likely to be a ransomware victim compared to organizations with a rating of 750 or higher. Organizations with a rating between 600 and 650 are 4.6 times more likely.
Correlation to Stock Performance
Solactive, a German index engineering firm, found that companies in the top 25% of Bitsight ratings performance outperform the Solactive benchmark index on stock returns by 1% to 7% with lower volatility.
Additionally, IHS Markit found that there is a causal relationship between the company’s cybersecurity readiness – manifested in a higher Bitsight / IHS Markit rank – and their equity performance. Per their research, the 37 highest performers with a top rank of 1 offered more attractive valuation multiples than the 35 businesses that were ranked at the bottom.